Solving a Complex Problem Custom Essay

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The case study should address improvements in the following areas.
Productivity, Inventory (EOQ model), Capacity, and Quality Improvements

FROM: George Washburn
SUBJECT: Major Issue pertaining to customer orders backlog
As we discussed the other day with Don Stump, the Director of Materials, we have begun to experience a growing backlog of customer orders in the Plasti-Brack product line.
For the last two to three months apparently we have had a slow creep-up of order backlog in the MLD250 department, specifically the Plasti-Brack molding group. It seems that we now have a 5 to 6 week backlog which is entirely unacceptable to our customers. As you know, our customers have been accustomed to getting orders shipped almost immediately or within a week of placing their orders. So now they don?t like to have to wait. Jack Walker and I think that this could possibly adversely affect our business since these items are so popular.
It is my opinion that we need more capacity in Machine Group 251. As you know, we have four 250-Ton plastic injection molding machines which run these six parts. However, lately one of the machines seems to be experiencing excessive downtime. There also seems to be some tool wear causing low productivity. I suggest you talk to Don Stump to get more details on the order backlog and his scheduling system. Talk to Tom Gunner in Engineering or one of his Manufacturing Engineers about the machines and tools. And you should also check with Bill Morton and someone in the Plastic Injection Molding area about the tools. And while you are talking with Bill, ask him about his opinion of capacity. Ask Don Stump his opinion as well.
What I expect you to do consists of three main activities: 1) check out our capacity problem. See what we need to do to increase capacity. There is a capital budget available for the MLD2500 group – see Harvey Lund for more details. 2) We have to get our delivery time down to acceptable levels – see Don Stump for the details. 3) And while you are at, see what you can do to improve productivity and lower our costs. I expect your report in about two weeks with your recommendations and justification.
Let me know if you have any questions as you proceed. Thanks. ~GW

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